Skip to content

Abu Dhabi-based Bitcoin miner Phoenix Group raises $370 million in IPO

Abu Dhabi-based Bitcoin miner Phoenix Group raises $370 million in IPO

Phoenix Group, a Bitcoin (BTC) mining and colocation service provider based in Abu Dhabi, has made a significant mark by successfully raising $370 million in its recent initial public offering (IPO).

The company disclosed this achievement in a statement on Tuesday, November 21, highlighting that the IPO received an overwhelming response, being oversubscribed by an impressive 33 times. Notably, the demand from retail investors stood out, with a remarkable oversubscription rate of 180 times.

The IPO process, initiated on November 16 on the Abu Dhabi Securities Exchange (ADX), concluded on November 18. The company is now preparing for trading to commence on December 4, with its shares listed under the ticker symbol PHX. Phoenix Group offered 907 million shares during the IPO, representing 17.64% of its stakes, with the intention of raising 1.3 billion UAE Dirhams, equivalent to approximately $370 million.

Bijan Alizadehfard, Co-Founder and CEO of Phoenix Group PLC, noted that “the overwhelming interest during the offer period is a powerful endorsement of our pioneering role in cryptocurrency mining and blockchain. The anticipation leading up to our listing on ADX, as reflected by the oversubscription, is a testament to the confidence investors place in our vision and the potential they see in Phoenix Group.”

Previous undertakings of Phoenix Group 

Phoenix Group operates across various business segments, engaging in hosting and mining activities across the U.S., Canada, Europe, and the Middle East. Beyond its core services, the company sells miners and hardware wallets to retail users. Additionally, it manages the Abu Dhabi-regulated crypto investment platform M2.

The IPO prospectus reveals Phoenix Group’s financial performance. For the first nine months of this year, the company reported a gross profit of $76 million on revenue of $229 million. Looking at 2022, Phoenix experienced a gross profit of $171 million, boasting a healthy gross margin of 22.6%.

Phoenix Group’s IPO’s success underscores the growing interest in cryptocurrency-related businesses and positions the company as a key player in the Bitcoin mining and colocation sector. As it enters the public trading arena, Phoenix looks poised to contribute significantly to the evolving landscape of the crypto industry.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

Related posts